Now that you've decided to go to graduate or professional school, these topics will help you figure out how to pay for it:

How much aid is available?
Develop your budget
What aid sources are available?
Getting the application process started
How much will you need in loans?
What you should know about loans
Other resources
What if you plan to study in Canada?

Financial aid is usually based on a student's
calculated financial need. Financial need is the difference between the cost of
attendance at your school and your expected family contribution (EFC). As an
undergraduate, you were probably declared a dependent student, meaning your
family contribution was based on your income and assets, as well as those of
your parents. As a graduate student, you can qualify as an independent student,
meaning your EFC will be based solely on your income and assets (and those of
your spouse, if you are married). Since you probably earn less than your
parents, and have fewer assets, you are likely to qualify for need-based aid.

To make certain no one questions your status as an independent student, be sure
you're not claimed as a tax exemption by your parents for the first calendar
year of the award (e.g., 2006 for the 2006-2007 school year).

HELP FROM THE FEDERAL GOVERNMENT

College Work-Study
This is a need-based program funded primarily by the federal government in
which your school finds you a job. Your salary will hover around minimum wage.
If you receive a $1,000 work-study award, you may work until you earn $1,000,
at which point employment terminates.

Federal Perkins Loans
This is a need-based program in which graduate students may borrow up to
$40,000 total, less any amount borrowed as an undergraduate. Repayment begins
nine months after studies end. The interest rate is a low 5 percent.

Subsidized Federal Stafford Loans are need-based loans in which interest is
paid by the federal government while you are in school, during the grace period, and
during approved periods of deferment and forbearance. Graduate students may borrow
up to $8,500 per year to an aggregate maximum of $65,500 (less any amount borrowed as
an undergraduate. Repayment begins 6 months after you graduate or are no longer enrolled
at least half time in a degree program. The interest rate is fixed at 6.8%.

Unsubsidized Federal Stafford Loans are not based on financial need and the interest
is NOT paid by the government. The interest begins to accrue as soon as the funds are
disbursed to you. You may either pay the interest when billed or allow it to accrue while
in school, during the grace period, and during approved periods of deferment and forbearance.
The accrued interest will be capitalized (added to the principal loan amount) immediately prior
to repayment. Graduate students may borrow up to $20,500 per year (less any subsidized Stafford Loans) to an
aggregate maximum of $138,500 (less any subsidized Stafford Loans and any amount borrowed as an undergraduate).
Repayment begins 6 months after you graduate or are no longer enrolled at least half time in a degree program.
The interest rate is fixed at 6.8%.

Federal PLUS Loans are an unsubsidized education loan now available to graduate students that has no grace period and goes into repayment as soon as the funds are disbursed to the borrower. It has the same deferment and forbearance options as the Federal Stafford Loan program. As such, graduate and professional students can postpone repayment using an In-School Deferment while enrolled at least half-time in a degree or certificate program of study. During any period of deferment or forbearance, interest can accrue and be added to the principal loan balance (capitalized) at the end of the deferment or forbearance period if it is not paid by the borrower as it accrues.

PLUS loans have no annual aggregate limit-you can borrow up to the amount certified by your school. The interest rate is fixed at 8.5%. Credit checks are required to be eligible for this loan, but the credit criteria are less stringent than with most private student loans. And, if you don't meet the credit requirements, you can still obtain the loan with a qualified endorser.

Deduction for Student Loan Interest.
Students who are deeply in debt may now deduct some of the interest they pay on "qualified education loans."
The maximum deduction is $2,500. The deduction starts to phase out when annual gross income
(AGI) exceeds $50,000 ($105,000 if filing jointly), and you can't take this deduction if your AGI
is $65,000 ($135,000 if filing jointly) or more.

Veterans Education Benefits. Veterans of the Armed Services who
participated in the Montgomery GI Bill program may be eligible for
benefits. Contact your school’s Veterans Affairs or financial aid
office for more information.

For more information on the student aid programs offered by the
federal government, visit www.ed.gov.

To receive this assistance, students must generally remain in their home
state. Furthermore, many programs are restricted to certain study areas
(e.g., medicine) or population groups (e.g., women and minorities).

HELP FROM YOUR SCHOOL

Departmental Grants.
These are controlled by the departmental chair, not the financial
aid office.

Research Assistantships.
These put you at the bottom rung of the academic hierarchy. You
wash test tubes. You teach freshman composition. You proctor
examinations. The pay is low, but the experience is great.

Internships.
Professors are well connected. They can call large corporations
and say, "Have I got a prospect for you. Give this student an
internship and see for yourself."

Employment.
The federal government, as well as large corporations, awards
millions of dollars in research grants to graduate schools every
year. Some of that money goes to the famous professor who attracted
the money in the first place. Some of the money also goes to
graduate students who perform the routine and repetitive parts of
the research.

You might also consider going to work for a university.
Many schools discount tuition for full-time employees, and while it
will take you a few extra years to complete the program, you won't
have a huge debt burden when you're through.

HELP FROM PRIVATE ORGANIZATIONS

Access Group.
Access Group is a nonprofit organization that offers assistance
through several specialized loan programs. Tools and information
for planning your school financing are available at their Web site:
http://www.accessgroup.org

National Research Council. The National research council offers
750 fellowships of up to $14,000 each. These fellowships are available to students
in the sciences, social sciences, mathematics, and engineering.
For more information contact:

Fulbright Scholars. This prestigious and competitive program allows
award recipients to live and study abroad. For more information on this and
other grants for graduate study in other countries, contact:

The Institute of International Education
US Student Programs
809 UN Plaza, New York, NY 10017.

Mellon Fellowships. Approximately 80 awards of tuition plus a $14,500
stipend are available for graduate students in the Humanities. For information,
contact:

HELP FROM YOUR EMPLOYER

If you will continue to work while attending graduate school, check with your employer
about tuition reimbursement programs. Many companies will pay part or all of the tuition
for successfully completed courses, especially if the course or degree program relates
directly to your job.